There are three types of return on investment relating to customer experience and the tools that we use to manage, measure and enhance it. These three types are:

Indirect ROI

Instant cost savings

Action based ROI

Indirect ROI

Measure – analyze – take action. Listen to your customer and change your service. This is a simple tactic but it is still considered indirect because results will not be seen immediately. In a normal situation, it is fairly hard to calculate indirect ROI, but the value is evident. We have seen businesses go under because of poor feedback and customer experience management. Failing to listen or even understand your customers is a much bigger deal than just not being able to collect and analyze feedback. The trick is not just collecting feedback or customer experience data. The trick is to understand which parts of your business are the biggest drivers of your customer experience. Understanding the root cause and “why” of your issues. This can be done by collecting feedback continuously and organizing it into an easy-to-understand format.

To get the most out of feedback data, we need open-ended feedback to complement numbers. AI enhanced text analytics allows you to automatically determine the sentiment of your open-ended feedback so that you can spend less time reading and more time making decisions. From our customers, we have seen 30% growth in revenue from companies who put customer feedback in use by fixing the problems right when they arise. In another case, a web store was able to increase their average checkout basket size by 10% in matter of months and in turn, grow their bottom line by 7%.

Companies that invest in CX programs usually see fast results in their financials as well as in their overall customer satisfaction. On average, for every one point raise in your NPS (Net promoter score), your revenue will increase by 0.14%. So a seven-point increase in your NPS will result in 1% more revenue on average. This is due to the nature of customers “promoting” or “detracting” your business. If you can grow the number of promoters, you can be sure to have more positive referrals. According to Sage, it is clear that promoters are more than 17 times more likely to give a good review of the company to another person. Visit our NPS info page to calculate your company’s NPS.

Instant cost savings

Now we’re talking! Why do something later when you can do something immediately. The biggest and most obvious cost-saving you will see is in the tools you use. Technology has taken huge leaps forward during the past couple of years, especially in the CX industry. When you are able to manage everything in one place with a dedicated piece of software, you save hours of labour per week. We have seen average time savings of around 30% and cost savings of around 50% in analytics related costs when investing in customer experience management software.

When all of your CX data is in one place, you will also reduce the strain on your customer support team by Solving issues when they arise. Reduced customer churn and reduced employee churn is a good recipe for success.

Action based ROI

Now, this is my favorite part. Most CX professionals concentrate on analytics but neglect actions. This is about taking advantage of your CX data immediately. Customers that give you feedback are the most valuable customers you have because they care about your business and their own experience (they are 30% more valuable to be exact). So why not fix their problem AND offer them more? If you automate messages based on their feelings and offer them discounts, we can see amazing results. One of our eCommerce customers was able to convert 5% of their complaining customers by offering them a discount. Pretty good right?

Another straightforward implication is to collect feedback before the customer has bought from you, analyze it and, based on that feedback, optimize your sales funnel to reduce friction and reach the sale. A website was able to convert 7% of their users when they were first asked to give feedback. They set automated messages that would send discounts to them. The tone of the message is important here. If the customer is unhappy, the message would read something like:

“We’re sorry to hear that you had a negative experience today. To make it up to you, and to thank you for giving feedback, here’s a 10% discount to use on your next purchase”

The same discount with a different tone would be sent to loyal, happy customers:

“Thanks for your feedback! We want to reward our most loyal customers, like you. So here’s a 10% discount to use on your next purchase”

Lastly, taking advantage of reviews is not new to the eCommerce industry but is often neglected by other businesses. This is a huge amount of lost potential because the reviews have exactly the same kind of effect on sales in other businesses as well. So when someone gives you feedback, why not to ask a review and share that on social media? Of course, it is a good idea to give them a small incentive to do that but often the most engaged customers are happy to do so. Our research has shown that up to 5% of all people who give feedback are willing to publish a review!

There are a lot of potential avenues for turning customer experience into profit and most of them are underutilized by most companies. We are talking about a potential increase of 10%-20% on yearly basis – which is nothing to scoff at! So take these tips, add them to your tool boxes and make good use of them.

– J

Jaakko Männistö

Jaakko is an award-winning CX professional and entrepreneur at Feedbackly, founder and community professional at the biggest entrepreneurial digital community in Finland - Yrittäjä.io. He is a notorious keynote speaker from entrepreneurial stories to day to day human communications and customer experiences.

Imagine this: You’re doing everything you can to grow your business. You’ve redesigned your website, you’re sales team is working hard, and you are indeed getting new customers. But your customer churn is through the roof, and you don’t even know if your customers are satisfied. What’s worse, you’re running out of ideas and your investors are looking for a reason to keep the cash flowing. The issue is that you’re not thinking about the big picture because you’re too focused on individual systems and interactions. You’re not thinking about customer experience. What the concept of customer experience forces us to do is look at a customer’s entire perception of your brand as a fluid and evolving thing – shaped by each and every interaction they have with it. Let’s look at the true cost of bad customer experiences.

Jaakko Männistö

Jaakko is an award-winning CX professional and entrepreneur at Feedbackly, founder and community professional at the biggest entrepreneurial digital community in Finland - Yrittäjä.io. He is a notorious keynote speaker from entrepreneurial stories to day to day human communications and customer experiences.

There’s a lot of buzz right now about customer experience (CX), and why it’s the next big thing for companies to differentiate themselves in a competitive market. But what are people really saying? By dedicating themselves to a better customer experience, companies can reap many benefits including higher revenues and retention, happier employees, more recognition, and a chance at thriving even when their industry is not. Examples of these companies are seen all over business magazines and they line the business bookshelves of the world. Southwest Airlines, Starbucks, and Whole Foods Market are revered icons of this paradigm. So how did companies like these mold themselves to become models of great customer experience?

Jaakko Männistö

Jaakko is an award-winning CX professional and entrepreneur at Feedbackly, founder and community professional at the biggest entrepreneurial digital community in Finland - Yrittäjä.io. He is a notorious keynote speaker from entrepreneurial stories to day to day human communications and customer experiences.

This is a guest post from Mikhail Dubov, founder and CEO of Chattermill, a data analysis company that specializes in customer experience management.

To build passionate customers, you must take into account all types of customers and not just your detractors. It is hard to find a company these days that does not want to listen to its customers. However, only a select few have truly mastered this art. One of the most common mistakes we see is only focusing on negative feedback or detractors in the Net Promoter Score terminology. It’s easy to see the intuitive appeal. You think that the key to better customer experience is to solve problems and negative feedback seems like a natural place to start. Unfortunately, this is not always the right approach. Promoters are often a much richer source of insight and should at the very least be listened to as much as detractors. Let’s see why:

Jaakko Männistö

Jaakko is an award-winning CX professional and entrepreneur at Feedbackly, founder and community professional at the biggest entrepreneurial digital community in Finland - Yrittäjä.io. He is a notorious keynote speaker from entrepreneurial stories to day to day human communications and customer experiences.

Getting customers is hard so why not try to keep the current ones even longer? Keeping them should be easier than getting new ones. You know them already, you know what they want and you know what they expect of you – or do you? With fierce competitors building communities and aggressively marketing on price, you have to put real energy and effort into maintaining a consistent customer base. Just providing a great product or service is rarely enough to keep them coming back for more. You need to be able to create real customer loyalty. Loyal customers are those ones you want to have. And actually, according to White House Consumer Affairs It is 7 times more expensive to find a new customer than to keep an existing one and on average, loyal customers are worth up to 10 times as much as non loyal customers!

Jaakko Männistö

Jaakko is an award-winning CX professional and entrepreneur at Feedbackly, founder and community professional at the biggest entrepreneurial digital community in Finland - Yrittäjä.io. He is a notorious keynote speaker from entrepreneurial stories to day to day human communications and customer experiences.

In the world of data, Net Promoter Score or NPS has risen to be one of the most used metric to measure customer experiences. To jump right in to it, the Net Promoter Score is a particular statistic that some researchers propose can predict whether overall customer loyalty will encourage your business to grow or not. The main idea of NPS is alluringly simple. Take the percentage of customers who are highly likely to recommend you (promoters), subtract those who are disinclined, indifferent, or only somewhat likely to give you good word of mouth (detractors). There you have it: %P – %D = NPS. The prediction is that a higher score allows for better top-line growth. Lue koko artikkeli →

Jaakko Männistö

Jaakko is an award-winning CX professional and entrepreneur at Feedbackly, founder and community professional at the biggest entrepreneurial digital community in Finland - Yrittäjä.io. He is a notorious keynote speaker from entrepreneurial stories to day to day human communications and customer experiences.

More organizations are utilizing online surveys as a method of capturing satisfaction feedback from their customers. Propels in innovation in the course of recent years have made it exceptionally savvy to gather a lot of information on a constant basis. Furthermore, organizations are starting to hop onto the temporary fad to accumulate their customer experience data. In any case, in the event that it isn’t done well, you can without much of a stretch wind up with poor results that don’t generally bolster the vital or operational choices that you set out to benefit from in any case. Lue koko artikkeli →

Jaakko Männistö

Jaakko is an award-winning CX professional and entrepreneur at Feedbackly, founder and community professional at the biggest entrepreneurial digital community in Finland - Yrittäjä.io. He is a notorious keynote speaker from entrepreneurial stories to day to day human communications and customer experiences.